Employment Practice Liability (EPL) Insurance
As a result of increased UK employment legislation, the possibilities for employment actions against businesses are multiplying.
Most staff are aware of their rights and are quite prepared to take action against their employers if they think these rights are being breached.
Meanwhile compensation awards are reaching six, even seven figures in the UK, setting precedents and giving employees everywhere a context for their own grievances.
Of course, outside the UK, companies with any kind of US exposure face the full force of class actions and a history of huge settlements (“normal” for domestic US businesses who understand EPL, but potentially devastating for a growing UK company, with say a small US outlet).
Unlike standard Employment Legal Expenses Insurance:
- EPL claims are not subject to any ‘prospect of success clause’ i.e. requiring a 51% chance of success
- EPL claims will not be prejudiced if you do not contact an employment claims ‘helpline’ and/or follow their instructions exactly
- EPL claims do not have to be handled by an insurer’s ‘panel’ insurer. Provided your own solicitor is suitably qualified EPL insurers will generally agree to your own solicitor being appointed.
In view of the very wide nature of the coverage, an excess of at least £1,000 (usually £2,500 or £5,000) is standard.
EPLI covers legal costs, expenses and compensation awards for a wide range of employment practice violations.